TORONTO, April 12, 2006 (PRIMEZONE) -- Eastmain Resources Inc. (TSX:ER) announces that its subsidiary, Ruby Hill Exploration Inc. (50% owned by Eastmain) has entered into an agreement with Western Uranium Corporation (TSX-V:WUC) to sell its prospecting permits and mineral claims located in the Thelon basin of Nunavut and the Northwest Territories. Pursuant to the terms of a letter agreement between Ruby Hill and Western Uranium, Ruby Hill will acquire 1.1 million shares of Western Uranium in exchange for its Thelon properties. Completion of the acquisition, which is expected to occur on or before April 26, 2006, is subject to satisfactory due diligence in respect of the exploration rights, and receipt of all applicable regulatory approvals.
Western Uranium Corporation currently holds an inventory (non-NI-43-101 compliant) of 19 million pounds of uranium with the possibility to increase its exploration potential to 60 million pounds in properties located in Nevada and New Mexico.
Unconformity-type uranium deposits like those found in Canada's Athabasca basin are the highest grade deposits in the world. The Thelon basin is geologically analogous to the Athabasca basin and exhibits excellent exploration potential for hosting similar high-grade uranium deposits. Currently, the Thelon basin hosts two significant uranium deposits; the Kiggavik deposit, reported to contain 40 million pounds at a grade of 0.65 per cent of U3O8, which is located on the southern perimeter of the basin in Nunavut, and Boomerang Lake, located on the western perimeter in the Northwest Territories.
Far less intensively explored than the Athabasca, the Thelon basin provides an incredible opportunity for companies like Western Uranium to increase their resources through discovery of new unconformity-type deposits.
Eastmain's strategy is to provide its shareholders with leverage to a thriving uranium market through its 50% ownership in Ruby Hill Exploration Inc., a privately held company. Ruby Hill is managed by Dr. Neil Hillhouse, P.Eng, qualified person, special technical advisor to Eastmain and President of Ruby Hill Exploration Inc.
Eastmain is one of the most active mining exploration companies in Northern Quebec. The Company's primary focus is gold exploration within an emerging mining district in the Eastmain/Opinaca region of Quebec. With approximately 61 million shares issued and outstanding, Eastmain has working capital of C$7.8 million and is debt free.